A close above 1.3818 triggers a bullish long-term trend reversal on a weekly basis for euro/dollar, according to George Davis at RBC Capital Markets.
GBPUSD tested a key resistance level at 1.6747 last week but failed to break it, forming a bearish shooting star pattern in the process, says Andy Dodd at Louis Capital Markets. A break below 1.6618 could the pave the way to 1.6389.
The South African rand is oversold against the major currencies and due for a major correction throughout 2014, according to Chris Williams at Newedge.
USD/JPY has peaked in the medium-term according to Nikolas Baptiste of the Technical Analysis Group (TAG). The recent decline to the current level they describe as the ‘doorway to the downside’ at 100.75 with the more recent bounce merely a short-term correction.
USD/CAD has already triggered significant trend reversals over the short, medium and long-term, according to George Davis of RBC Capital Markets.
Safe haven flows into the Yen after the EM sell-off means 101.65 is the level to watch for USD/JPY, says George Davis at RBC Capital Markets. Below this the corrective downtrend is resumed. A close above the 104.36 trendline will end this downtrend.
USD/ARS looks to be taking some time to consolidate the parabolic move near 8.00 but should look to top at around 8.25/55 over the next one to two months, says Rob Zukowski at 4Cast. A reversal should then see the market return to where it started the sell-off at 6.80/7.00.
A close below 1.3526 would open the way for further declines to 1.3402 for EUR/USD, according to George Davis at RBC Capital Markets. The 200-day moving average at 1.3354 is a further test with resistance at 1.3634 and 1.3697 expected to attract more selling interest.
Trading in USD/JPY since September has seen selling interest repeatedly fail to continue for more than 3 days in a row, says Max Knudsen at ADS Securities . Against this background the forecast is to be cautious and expect no new momentum until prices break 102.99- 103.54.
1.0738 is the next key level to watch for the Canadian dollar, according to George Davis at RBC Capital Markets, following last year’s break above the 2010 quintuple top at 1.0679. With the current uptrend still in place, the 2010 high of 1.0854 is also a major resistance level to watch.